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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Taxes |
Schedule of Income Before Provision for Income Taxes | “Income (loss) before provision for income taxes” as shown in the accompanying Consolidated Statements of Income (Loss) is comprised of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ | ​ | 2025 | ​ | 2024 | ​ | 2023
Domestic | ​ | $ | (25,782) | ​ | $ | (37,232) | ​ | $ | (82,690)
Foreign | ​ | ​ | 45,410 | ​ | ​ | 43,432 | ​ | ​ | 41,151
Total | ​ | $ | 19,628 | ​ | $ | 6,200 | ​ | $ | (41,539)
Schedule of Components of Provision for Income Taxes | Components of the “Provision for income taxes” in the accompanying Consolidated Statements of Income (Loss) consist of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ | ​ | 2025 | ​ | 2024 | ​ | 2023
Current | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 691 | ​ | $ | (6,807) | ​ | $ | 1,748
Foreign | ​ | ​ | 5,460 | ​ | ​ | 6,529 | ​ | ​ | 5,248
State and local | ​ | ​ | 499 | ​ | ​ | 503 | ​ | ​ | 564
Total current expense | ​ | ​ | 6,650 | ​ | ​ | 225 | ​ | ​ | 7,560
Deferred expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | (1,085) | ​ | ​ | (649) | ​ | ​ | 39,634
Foreign | ​ | ​ | 630 | ​ | ​ | (1,453) | ​ | ​ | 573
State and local | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,180
Total deferred expense (benefit) | ​ | ​ | (455) | ​ | ​ | (2,102) | ​ | ​ | 49,387
Provision for income taxes | ​ | $ | 6,195 | ​ | $ | (1,877) | ​ | $ | 56,947
Schedule of income tax paid net of refunds | The following table presents total cash paid, net of refunds, for income taxes disaggregated by jurisdiction (in thousands):
​ | ​ | ​ | ​
​ | ​ | Year Ended
​ | ​ | December 31, 2025
Federal | ​ | $ | 1,553
State | ​ | ​ | 201
Foreign | ​ | ​ | ​
Canada | ​ | ​ | 3,197
Argentina | ​ | ​ | 833
Other | ​ | ​ | 1,388
Total | ​ | $ | 7,172
Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate | A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate for the year ended December 31, 2025, is as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, 2025 | ​
​ | ​ | $ | ​ | % | ​
U.S. statutory tax rate | ​ | $ | 4,122 | ​ | ​ | 21.0 | %
State and local taxes, net of federal benefit (a)(b) | ​ | ​ | 329 | ​ | ​ | 1.7 | ​
Foreign tax effects | ​ | ​ | ​ | ​ | ​ | ​ | ​
Canada - Rate Differential | ​ | ​ | 438 | ​ | ​ | 2.2 | ​
Canada -Other | ​ | ​ | 105 | ​ | ​ | 0.5 | ​
Foreign withholding taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​
Canada withholding taxes | ​ | ​ | 913 | ​ | ​ | 4.7 | ​
Argentina withholding taxes | ​ | ​ | 510 | ​ | ​ | 2.6 | ​
Other | ​ | ​ | 850 | ​ | ​ | 4.3 | ​
Earnings and adjustments attributable to non-controlling interests (c)(d) | ​ | ​ | (57) | ​ | ​ | (0.3) | ​
Effect of changes in tax laws or rates enacted in the current period | ​ | ​ | 838 | ​ | ​ | 4.3 | ​
Effect of cross-border tax laws | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred impact on organizational restructure - Canada | ​ | ​ | (362) | ​ | ​ | (1.8) | ​
Deemed royalty | ​ | ​ | 364 | ​ | ​ | 1.9 | ​
Foreign Tax Credits | ​ | ​ | (3,079) | ​ | ​ | (15.7) | ​
Nontaxable or nondeductible items | ​ | ​ | ​ | ​ | ​ | ​ | ​
Share-based payment awards | ​ | ​ | 853 | ​ | ​ | 4.3 | ​
162(m) compensation limitation | ​ | ​ | 243 | ​ | ​ | 1.2 | ​
Other | ​ | ​ | (160) | ​ | ​ | (0.8) | ​
Changes in Valuation Allowances Federal | ​ | ​ | 758 | ​ | ​ | 3.9 | ​
Other Adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other | ​ | ​ | (470) | ​ | ​ | (2.4) | ​
​ | ​ | $ | 6,195 | ​ | ​ | 31.6 | %
(a) | The Company does not expect to have material state income tax expense. The states with the highest expected impact are Colorado, California, Minnesota, Florida, New Jersey, Pennsylvania and Illinois.
(b) | Encompasses state tax liabilities and any state-specific tax adjustments such as the write-off of state deferred tax assets (including valuation allowances on state net operating losses (“NOL”s) and other state tax differences.
(c) | The majority of the Company’s income is generated via a pass-through entity of which the non-controlling interest owns approximately 40%, that proportion of the Company’s income is not subject to U.S. or state income tax rates.
(d) | Approximately 40% of foreign taxes paid at the RMCO level and corporate subsidiary taxes are attributable to the non-controlling interest. As a result, these taxes are not creditable against the U.S. taxes of Holdings.
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, a reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, | ​
​ | ​ | 2024 | ​ | 2023 | ​
U.S. statutory tax rate | ​ | ​ | 21.0 | % | ​ | 21.0 | %
State and local taxes, net of federal benefit | ​ | ​ | 5.7 | ​ | ​ | 3.7 | ​
Income attributable to non-controlling interests (a) | ​ | ​ | (12.7) | ​ | ​ | (16.3) | ​
Subtotal | ​ | ​ | 14.0 | % | ​ | 8.4 | %
Non-creditable foreign and domestic taxes - non-controlling interest (b)(c) | ​ | ​ | 30.7 | ​ | ​ | (4.6) | ​
Non-creditable foreign taxes - RE/MAX Holdings (c)(d) | ​ | ​ | 8.7 | ​ | ​ | (0.5) | ​
Foreign derived intangible income deduction | ​ | ​ | (8.6) | ​ | ​ | — | ​
Other permanent differences | ​ | ​ | 23.3 | ​ | ​ | (3.4) | ​
Uncertain tax positions | ​ | ​ | — | ​ | ​ | 2.4 | ​
Foreign Tax Rate Differential | ​ | ​ | (2.5) | ​ | ​ | — | ​
162(m) compensation limitation | ​ | ​ | 1.6 | ​ | ​ | — | ​
Valuation Allowance | ​ | ​ | (108.0) | ​ | ​ | (153.1) | ​
Effect of permanent difference - adjustment TRA liability | ​ | ​ | 4.8 | ​ | ​ | 15.0 | ​
Other | ​ | ​ | 5.7 | ​ | ​ | (1.3) | ​
​ | ​ | ​ | (30.3) | % | ​ | (137.1) | %
(a) | Given the majority of the Company’s income is generated via a pass-through entity of which the non-controlling interest owns approximately 40%, that proportion of the Company’s income is not subject to U.S. or state income tax rates.
(b) | Approximately 40% of foreign taxes paid at the RMCO level and corporate subsidiary taxes are attributable to the non-controlling interest. As a result, these taxes are not creditable against the U.S. taxes of Holdings.
(c) | The percentage impact of these items in 2023 switched directionally because the Company’s pre-tax net income changed from positive to negative.
(d) | While a portion of foreign taxes are creditable within the U.S. since Canada’s tax rate is higher than the U.S. statutory rate a portion of the tax paid will not be creditable.
Summary of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities are summarized as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31,
​ | ​ | 2025 | ​ | 2024
Deferred tax assets | ​ | ​ | ​ | ​ | ​ | ​
Goodwill, other intangibles and other assets | ​ | $ | 22,921 | ​ | $ | 28,322
Settlement charge | ​ | ​ | — | ​ | ​ | 1,180
Imputed interest deduction pursuant to tax receivable agreements | ​ | ​ | 1,763 | ​ | ​ | 1,987
Operating lease liabilities | ​ | ​ | 3,303 | ​ | ​ | 4,398
Compensation and benefits | ​ | ​ | 3,427 | ​ | ​ | 5,238
Allowance for doubtful accounts | ​ | ​ | 2,334 | ​ | ​ | 1,043
Property and equipment | ​ | ​ | 1,749 | ​ | ​ | 442
Deferred revenue | ​ | ​ | 4,055 | ​ | ​ | 3,624
Foreign tax credit carryforward | ​ | ​ | 16,960 | ​ | ​ | 14,919
Net operating loss carryforward | ​ | ​ | 2,795 | ​ | ​ | 1
163j business interest limitation carryforward | ​ | ​ | 11,757 | ​ | ​ | 9,987
Other | ​ | ​ | 2,319 | ​ | ​ | 3,812
Total deferred tax assets | ​ | ​ | 73,383 | ​ | ​ | 74,953
Valuation allowance (a) | ​ | ​ | (68,812) | ​ | ​ | (69,211)
Total deferred tax assets, net of valuation allowance | ​ | ​ | 4,571 | ​ | ​ | 5,742
Deferred tax liabilities | ​ | ​ | ​ | ​ | ​ | ​
Goodwill, other intangibles and other assets | ​ | ​ | (10,289) | ​ | ​ | (10,888)
Operating lease assets | ​ | ​ | (1,722) | ​ | ​ | (2,408)
Other | ​ | ​ | (753) | ​ | ​ | (894)
Total deferred tax liabilities | ​ | ​ | (12,764) | ​ | ​ | (14,190)
Net deferred tax assets and liabilities | ​ | $ | (8,193) | ​ | $ | (8,448)
(a) | In 2025 and 2024, a valuation allowance was recorded against the Company’s deferred tax assets as a result of a combined three-year cumulative loss primarily due to the settlement of the 2023 industry class-action lawsuits.
Schedule of unrecognized tax benefits | Uncertain tax position liabilities represent the aggregate tax effect of differences between the tax return positions and the amounts otherwise recognized in the consolidated financial statements and are recognized in “Income taxes payable” in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount, excluding interest and penalties is as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31,
​ | ​ | 2025 | ​ | 2024 | ​ | 2023
Balance, January 1 | ​ | $ | 30 | ​ | $ | 258 | ​ | $ | 1,014
Decrease related to prior year tax positions | ​ | ​ | (30) | ​ | ​ | (228) | ​ | ​ | (756)
Balance, December 31 (a) | ​ | $ | — | ​ | $ | 30 | ​ | $ | 258
(a) | Excludes accrued interest and penalties of $0.1 million for the year ended December 31, 2023. As of December 31, 2025, there is no accrued interest and penalties. Interest and penalties are recognized in “Income taxes payable” within the Consolidated Balance Sheets.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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